China Steel

Stakeholder engagement
China Steel discloses how often and through which channels it engages with various stakeholder groups. The company’s stakeholder engagement covers nature, including biodiversity, and social issues.

Water
China Steel demonstrates it is reducing water withdrawal in its own operations compared to the previous year. The company sets a mid-term target to reduce water consumption by 51% in the next three to five years compared to its baseline year 2017 and reports progress against the target. The company applies Water Risk Atlas to identify water-stressed areas and discloses no areas of high or extremely high water stress.

Solid and air pollution
China Steel is reducing the production of hazardous waste by recycling chromic sludge for reuse. The company discloses the proportion of hazardous waste treated to reduce pollution compared to total waste, the hazardous waste diverted from disposal and the waste directed to disposal. The company discloses that it has no waste plastic in 2021.
China Steel reports regularly on air quality parameters of emissions of harmful air pollutants, including SOx, NOx, VOCs, particulates and dioxin emissions. The company has time-bound targets to reduce air pollutants, including particulates, SOx and NOx emissions, across the most material parts of its value chain in the next five years, and reports regularly against these targets.

No leading practices were identified for the company in the social inclusion and community impact area

Sustainability strategy and accountability
China Steel discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy. While the company discloses some sustainability targets and reports consistently against all its targets, no evidence that the company has group wide targets on key sustainability topics for the most material parts of its value chain based on the SBTN Sectoral Materiality Tool could be found in the public domain. No evidence was found that the company links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. The company does not disclose whether its highest governance body has expertise regarding nature-related topics.

Stakeholder engagement
China Steel discloses an overview of the issues raised during its stakeholder engagement activities.

Lobbying
China Steel discloses a list of trade associations of which it is a member wherever it operates. However, the company does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. The company does not report (potential) misalignment between the lobbying activities of its trade associations and nature-positive policies.

Impact and dependencies assessment
China Steel has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Key areas and species
China Steel discloses the locations that are in or adjacent to areas important for biodiversity within its own operations.

Ecosystem conversion and restoration
No evidence was found regarding China Steel’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Resource exploitation and circularity
China Steel does not disclose its inputs, including its material footprint. The company does not report quantitatively on its group-wide circularity performance. The company does not disclose a target to improve soil health in its production or sourcing practices.

Water
China Steel does not engage with suppliers to reduce water withdrawal. The company reports a decrease in water pollution. The company does not disclose its processes for managing and monitoring discharge water quality. The company regularly reports on water pollution. The company does not disclose targets to reduce water pollution. The company does not disclose a commitment to respect the right to water. The company does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

GHG emissions
China Steel is reducing its scope 1 and 2 greenhouse gas emissions. The company has a time-bound target to reduce its scope 1 and 2 emissions. The company reports progress against its scope 1 and 2 emissions target. No evidence that the company’s scope 1 and 2 emissions target is aligned with a 1.5-degree trajectory was found. The company is reducing its scope 3 emissions. The company does not disclose a time-bound target to reduce its scope 3 emissions.

Invasive species
China Steel has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Safe, clean, healthy and sustainable environment
China Steel does not disclose a commitment to respecting local communities’ right to a safe, clean, healthy and sustainable environment. No evidence that the company tracks its actual or potential negative impacts on the health of local communities was found. The company is not committed to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous peoples’ and land rights
China Steel does not disclose a commitment to respect Indigenous Peoples’ rights. The company does not disclose its processes for identifying and recognising the rights of Indigenous Peoples when activities in its own operations may impact their rights, nor does it describe how it obtains Indigenous Peoples’ free, prior and informed consent. The company does not disclose a commitment to respect ownership and use of land and natural resources and related legitimate tenure rights, as set out in the relevant part(s) of the VGGTs or the IFC Performance Standards. No evidence was found that the company requires its business relationships to have a process to identify legitimate tenure rightsholders, paying particular attention to vulnerable or marginalised tenure rightsholders, and to negotiate with them to provide adequate compensation.

While China Steel conducts a materiality/risk assessment to identify the main risks to the business, there is no evidence it has a process to identify which human rights are at risk of being impacted by it own operations, in specific locations or through specific activities, as part of a human rights due diligence process. The company has an opportunity to describe a process for assessing the human rights risks it has identified and to disclose what it considers to be its salient human rights issues. A description of this process would include how relevant factors are considered, such as geographical, economic and social factors. No evidence was found that the company has a global system to act on its salient human rights issues.
While China Steel discloses the categories of stakeholders it engages with generally on sustainability issues, it is not clear if these stakeholders are those whose human rights have been or may be affected by its activities. No evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities was found.

While China Steel provides a statement expecting its suppliers to commit to respecting the health and safety of their workers, no evidence was found that it is a formal policy, approved and signed off by the highest governing body. While the company discloses that its employees are remunerated based on their duty and current market wage standards, it has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. No evidence that the company describes how it determines a living wage for the regions where it operates was found. While the company states that it expects its suppliers to pay wages that are sufficient for workers and their families to fulfil their basic needs, it has an opportunity to disclose how it works to support the payment of a living wage by its suppliers.
China Steel discloses the proportion of its total direct operations workforce covered by collective bargaining agreements. No evidence that the company describes how it works to support the practices of its suppliers in relation to freedom of association and collective bargaining was found.

While China Steel has a publicly available tax strategy on its website, there is no evidence this is a formal policy, approved and signed off by the highest governance body. No evidence that the company describes the process for identifying its bribery and corruption risks and impacts in specific locations or activities covering its own operations was found. While the company indicates that it incorporates anticorruption clause in the contract for contractors, it is unclear if it includes anti-bribery and anti-corruption clauses in its contracts with business relationships. No evidence that the company has a publicly available policy statement or policy setting out its lobbying and political engagement approach was found. The company states that it does not make political contributions but does not formalise this commitment in a public policy document.